GE401 – Innovative Product Design and Development 1

Team 10 - CubeFinal Presenation

Smart Shopping Assistant

1

Outline• Description of the Project• Design - Hardware• Design - Software• Business Plan• Development Plan• Professional and Ethical Issues• Developmental Stage of the Project• Problems Encountered• Conclusion• Questions

2Cube Company 2009

Description of the Project

An electronic device that aids the customers in a An electronic device that aids the customers in a shopping mall!shopping mall!

• Announce campaigns and promotions (sound ON or OFF)Announce campaigns and promotions (sound ON or OFF) and also and also display display information related to products, special offers and discountsinformation related to products, special offers and discounts

• Search an item or a store in the shopping mallSearch an item or a store in the shopping mall• Display geographic information (location of each customer) with wireless Display geographic information (location of each customer) with wireless

technologytechnology• Collect statistical data about the shopping trajectories Collect statistical data about the shopping trajectories and habits and habits of the of the

customerscustomers• Prepare an online shopping list beforehand and edit it while you are in the mallPrepare an online shopping list beforehand and edit it while you are in the mall

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Design-Hardware

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PDA

Wireless Network

Server holding Database 1 and 2

Linksys WRT54GX Wireless

LAN Access

HP iPAQ 6915 Pocket PC

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Design-Software

• Log-in Page: Incomplete• Tracking Page: Complete• Shopping List: Complete• Special Offer Display: Complete• Search Mall: Incomplete• Mall Map: Incomplete

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Business Plan• 1. Executive Summary

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The Company

CUBE International Limited Corporation

Shareholders

Atilla AKPINAR Çise Mıdoğlu

Çağil HAPOĞLU Umut CÖCEN

Cemil Can COŞKUN İbrahim GÜRSES

Business Plan

2. Organization Management

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Business Plan3. Market Analysis and Marketing Strategies

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Active Active Market Market

EnvironmentEnvironment

Strong Management

Growth Growth PotentialPotential

• 224 shopping malls all around Turkey224 shopping malls all around Turkey

• 288 shopping malls estimated for 2010288 shopping malls estimated for 2010

• $161 billion revenues in 2008$161 billion revenues in 2008

• Despite economical crisis, over $200 billion Despite economical crisis, over $200 billion revenues estimated for 2009revenues estimated for 2009

• The consumer – revenue indexes per square The consumer – revenue indexes per square meter is significantly increasing every yearmeter is significantly increasing every year

• Total employment in the sector has just Total employment in the sector has just decreased one percent, if compared with the decreased one percent, if compared with the

previous yearprevious year

• BBy the end of December 2009, the sector is y the end of December 2009, the sector is expected to have grown 4%, compared with expected to have grown 4%, compared with

the previous six months of the same yearthe previous six months of the same year

•Recruited the best financial advisers and Recruited the best financial advisers and the engineers with the most creative the engineers with the most creative

designers of Turkeydesigners of Turkey

Business Plan4. Financial Plan and Projections

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Sales Forecast Regarding that in first 3 years the company will only operate in Ankara market, the projectednumber of possible shopping malls is 28 only in Ankara and around 60,000 – 80,000 consumers visit one of these shopping malls on a weekend and we are aiming to reach the shopping malls who want to promote their products and reach more and more consumers. Our sales forcast is shown in the graphs below.

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500

1000

1500

2000

2500

3000

1st Year 2nd Year 3rd Year 4th Year 5th Year

Smart Shopping Assistant Sales

Good Scenario

Bad Scenario

 

Shopping Mall Daily Average Visitors

AnkaMall 35000 - 40000

Armada 30000 – 35000

Bilkent Center 20000 – 25000

Cepa AVM 15000 – 20000

Panora 15000 – 20000

Arcadium 10000 – 15000

Forum Ankara 10000 - 15000

Break - Even Analysis

Selling Price/unit: 750TLq Variable Cost/Unit: 550TLq Fixed Cost: 50,000TLq Expected Unit Sales: 850q Total Revenue : 637,500TLq Total Variable Costs: 467,500TLP Profit: 120,000TL

0

100000

200000

300000

400000

500000

600000

700000

0 20 50 100

200

300

400

500

600

700

800

Fixed Costs

Total Costs

Revenues

Break – even point maintained at 250 units.

Business Plan

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SWOT Analysis

Development Plan

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Professional and Ethical Issues

• Licenced Software Use• Limited Access to Internet (In R&D Division)• Strong Measures Against Copyright Infringement• Customer Access to Full Codework Denied• Mandatory Ethical Issues Seminar for Personnel

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Development Stage of Project

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Development Stage of the Project

• Software part %30 completed:– Java Simulation– Database Management Software– Trajectory Interface

• Hardware parts will be ordered in two weeks. • DEMO

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Problems Encountered

• Inadequacy of global positioning and location finding systems.– Indoor use– 1-1.5 meter sensitivity– Environment not flat

• Required PDA is not very user-friendly

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Conclusion

The retail sector will be growing in the upcoming years, although the The retail sector will be growing in the upcoming years, although the number of shopping malls in the main cities of Turkey is sufficient number of shopping malls in the main cities of Turkey is sufficient for 1-2 more years.for 1-2 more years.

The sector is ready to implement the new devices, changes and The sector is ready to implement the new devices, changes and innovations that would lead the customer to purchasing.innovations that would lead the customer to purchasing.

  A smart shopping assistant with a A smart shopping assistant with a simplesimple design and design and basic knowledge basic knowledge

for usagefor usage can be placed in the market in one-year period and would can be placed in the market in one-year period and would be remaining in the market for more than 2-3 years, with the be remaining in the market for more than 2-3 years, with the supporting technological improvements and supplies.supporting technological improvements and supplies.

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Questions

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